Maximum retail prices of VAT excluded essential goods to be re-gazetted


July 08, 2016 (LBO) – Sri Lanka’s cabinet is scheduled to meet next Tuesday to decide on the maximum retail prices of VAT excluded essential goods, Minister of Industry and Commerce said.

Minister Bathiudeen, addressing the Parliament today, said VAT is applied to certain commodities, though no VAT component is applied for essential food items.

VAT is currently not applied for food items such as White Rice, Sugar, Dhal, Big Onion, Potato, Red Onion, Milk Powder, Wheat Flour, Dried Chilies, Green Gram, Chick Peas, Canned Fish, Sprats, Chicken, Pharmaceuticals.

“In Sathosa outlets, we are selling VAT free consumer essential food items as mentioned above,” Bathiudeen said.

He said the present pricing formula which is implemented by the Consumer Affairs Authority is to be re-published and proper monitoring activity will be established district wise to monitor and raid errant traders.

“My ministry will take immediate action to re-gazette the maximum retail price of the essential items.”

If maximum retail prices are not maintain in the market aggrieved consumer can lodge a complaint to the Consumer Affairs Authority and hotline number ‘1977’ has been introduced to lodge the complaints over the phone.

Bathiudeen said the ministry is intending to increase 319 existing Sathosa out lets up to 500 by end of this year as a price control mechanism.